{"id":728,"date":"2022-10-26T17:08:00","date_gmt":"2022-10-26T21:08:00","guid":{"rendered":"https:\/\/www.ontariobusinesscentral.ca\/blog\/?p=728"},"modified":"2025-08-06T17:24:00","modified_gmt":"2025-08-06T21:24:00","slug":"how-to-dissolve-your-corporation","status":"publish","type":"post","link":"https:\/\/www.ontariobusinesscentral.ca\/blog\/how-to-dissolve-your-corporation\/","title":{"rendered":"How To Dissolve Your Corporation"},"content":{"rendered":"\n

Originally Published on Jan 10, 2017<\/em><\/p>\n\n\n\n

Dissolving your corporation requires you to consider many factors. There are basic steps that you should take in order to achieve a successful dissolution of your business while avoiding common pitfalls.<\/p>\n\n\n\n

Corporations dissolve for many reasons, and each case will have a unique set of needs that should be addressed. The following will give you a fundamental understanding of how to dissolve your business.<\/p>\n\n\n\n

What it means to dissolve your business<\/h2>\n\n\n\n

Dissolving a business consists of the legal processes required to end all operations. There are a number of things to confirm prior to dissolving your business.<\/p>\n\n\n\n

These include confirmation of the authority to dissolve the company along with ensuring that the business is currently in good standing.<\/p>\n\n\n\n

Any remaining property, assets, or liabilities must be distributed accordingly in order to complete a dissolution of your business.<\/p>\n\n\n

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Different types of business dissolution<\/h2>\n\n\n\n

Voluntary dissolution occurs when the company\u2019s shareholders or directors decide to use a special resolution to close the business.<\/p>\n\n\n\n

Administrative dissolution occurs under specific circumstances. For example, a corporation that hasn\u2019t begun its operations after 3 years of its incorporation may decide to dissolve itself. If the business is in default in paying any fees or providing the proper documentation, it may also undergo an administrative dissolution.<\/p>\n\n\n\n

Finally, involuntary dissolution may also occur. This must be based on one of a number of grounds. If the business has misrepresented itself in order to obtain the incorporation certification, it may dissolve. The CBCA requires company shareholders to meet each year, and failure to do so could result in a dissolution. If the corporation has not filed and maintained its yearly corporate tax filings or if the corporation has not maintained current corporate records within the jurisdiction of incorporation.<\/p>\n\n\n\n

Other actions such as withholding shareholder access to company records or failing to provide the relevant financial statements may lead to a dissolution.<\/p>\n\n\n

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